Sale of Sample product with Output Tax

[thisisrr37]

Dear SAP Expert,

I am facing a very weird issue in client system. We are doing sales order process for Sale of free sample product.

When i don't give any tax code then system is generating accounting entry like below as per VKOA settings:

410002 Sales Promotion Exp GL ----> Dr. (Item category - 20000 Expenses in Doc. splitting config)

To 202042 Adj. Finished Goods ----> Cr. (Item category - 06000 material in Doc. splitting config)

Document type is RV.

But when i give output tax code then error is coming in the attached screenshot vf02-error.png

I have checked in the Splitting configuration and found that for Bus. transaction & Transaction variant (0200/0001) category 06000 is not maintained and i believe it is standard configuration. Even if i try to maintain 06000 system won't let me to save.

But maintaining the item category in 0200/0001 combination is not proper solution because without tax code system is generating the accounting entry. In FS00 for both GL - 410002 & 202042 tax category is * and posting without tax allowed is also selected.

Please suggest what can be the exact issue.

[sandip_kurewar]

Dear ratulfico_roy, Yes !

[sandip_kurewar · Accepted solution]

@thisisrr37 Assign different document type in the billing document, Do not use RV. If you use doc type RV as per document splitting FM's it will check for customer line if tax is added, and will check why Material items in this document. Splitting design will stop you from the posting, the best way to handle this is use differnt document type for which all the categories are linked. Also I believe you want to post the tax line on free of charge goods, so keeping the different document type will help business in audit too

[thisisrr37 · Accepted solution]

Dear sandip.kurewar ,

Thanks for your response. Much Appreciated!!!

As per you in the new Document type should i select indicator for only Material and GL. And in the document splitting configuration for New document type I should assign Business Transaction 0000 & Transaction variant as 0001.

Correct me if I am wrong please?

Thanks!!!!

[sanilbhandari · Accepted solution]

Hello thisisrr37

This should be the correct approach

Thanks & regards

Sanil Bhandari

[sandip_kurewar · Accepted solution]

Dear ratulfico_roy, Yes ! I believe it should be like SA Doc type.

Happy Learning..!!! 🙂

[thisisrr37 · Accepted solution]

Dear sandip.kurewar & sanil.bhandari ,

I have created a new document type in OB07 in which i allowed only material and GL and in the document splitting configuration for document type maintained 0000 & 0001. And maintained the New document type with billing type in VOFA.

For FOC billing type is separate.

But while releasing the accounting document to Accounting, system was showing error that document type is not configured for Account type D as I have not selected customer.

Please suggest.

[sandip_kurewar · Accepted solution]

Make the changes in document type for D and release one more time.

[thisisrr37 · Accepted solution]

Dear sandipkurewar ,

If i make changes in new document type and allow Account type D then it is charging the tax amount to customer account. Client does not want to charge anything to customer.

Only alternative what i am thinking is that either client need to collect the output tax from Customer or we have to create one customer code in our client name and then while creating Sales order we need to change the payer so that tax will not be charged to customer whom we are selling the goods.

Because as per my understanding if tax is getting calculated from condition type then it should be charged to either vendor or customer specially if billing or Invoice is done through SD & MM process.

Correct me if i am wrong.

Best Regards!!!!

[sandip_kurewar · Accepted solution]

Technically there is no line item for customer in the Doc, so how could you say it will charges or will charge to customer? IF it is appearing in the output then you need to correct the logic. tax line should be for tax authority and only in client account document. For example in EBS we can utilize the GST amount charged by bank to client, it get posted with little trick in our books too. like that you have to configure.

[sanilbhandari · Accepted solution]

Hello thisisrr37

The accounting entry for FOC with tax should be as follows:

Tax Expense on Behalf of Customer A/c Dr

Sales Promotion Exp Dr

To Inv Adjustment A/c

To Tax Payable A/c

To achieve this, you need to change your pricing and create a tax condition type as an accrual condition type. So if you are using MWST, copy it in t code V/02 and create a new condition type. This condition type should be an accrual condition in pricing schema. You need to assign two accounting keys to this condition types in pricing and maintain the GL Accounts in VKOA.

You should still assign the new document type you created for posting to the billing document type configuration.

Please work with your SD Colleague to get the pricing right.

Hope this helps

Thanks & Regards,

Sanil Bhandari

[thisisrr37]

Dear sandipkurewar and Sanil Bhandari,

Thanks for the solution. I have suggested to client as per your suggestion and I have tried to replicate the entry and it is coming correctly now.

Thanks a lot!!